InvestorQ : Why are the food aggregators like Swiggy and Zomato laying off people in large numbers?
diksha shah made post

Why are the food aggregators like Swiggy and Zomato laying off people in large numbers?

Answer
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4 months ago


I guess, they really do not have much of a choice. With lockdowns for so long, there is no way they can sustain their fixed costs. Swiggy is laying off 1100 employees across grades and functions just two days after Zomato laid off 520 employees representing 13% of its workforce. The food delivery business has been badly impacted due to the lockdown and the restrictions on movement. These companies are not short of capital but it is more of a rational business decision to cut costs and prepare for the worst. While there is no confirmation from the company, employees are expected to be paid 3-months severance pay. Most of the lay-offs are in the cloud kitchen business as that has been worst hit by the lockdown.